The Figure Given Below Depicts the Foreign Exchange Market for British

question 78

Multiple Choice

The figure given below depicts the foreign exchange market for British pounds traded for U.S.dollars. Figure 36.2 Refer to Figure 36.2.An increase in the equilibrium quantity of British pounds from 300 to 350 would most likely mean that:

• A)the demand for British pounds has decreased.
• B)the supply of British pounds has decreased.
• C)increased demand for dollars has caused the dollar to depreciate and the pound to appreciate.
• D)increased demand for dollars has caused the dollar to appreciate and the pound to depreciate.
• E)the equilibrium exchange rate is $1.60 per British pound.

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Definitions:

Interaction

A kind of action that occurs as two or more objects have an effect upon one another. The idea of a two-way effect is essential in the concept of interaction, as opposed to a one-way causal effect.

Organismic Model

A perspective in biology and ecology that views an organism as a single, integrated unit.

Frederick Clements

An early 20th-century ecologist known for his theory of plant succession and the concept of the climax community.

Community Model

A theoretical framework describing the structure and function of a community of interacting organisms within an ecosystem.